Following April 4th, Total announced that China’s foreign exchange investment institutions have spent USD 3.14 billion to acquire 1.6% of the company’s shares, BP also announced similar information on April 15, involving USD 2 billion and about 1% of BP shares. .
What is the relationship between the two? What kind of purchase method may Chinese capital use? How does the acquisition affect China's investment institutions and even China's energy strategy? This reporter interviewed and consulted two professionals in the international investment industry.
Is the acquisition of Total and BP related to "resources"?
An analyst who once worked for a well-known foreign investment bank told reporters. What China’s foreign exchange investment institutions do, from the current understanding, is more of an ordinary simple investment behavior to find a way out for funds. The reasons for choosing Total and BP are mainly due to the belief that the two companies are currently The stock price is low and worth investing.
How to invest more than 2 billion U.S. dollars without causing fluctuations in stock prices and trading volume? The aforementioned analysts said that because the average daily turnover is more than a few hundred million, it is easy to operate more than two billion yuan in a few days or weeks.
In addition, whether the ownership of the two companies held by Chinese institutions will affect the operation and management of the company? The analyst said that it is unlikely. Most of the international giants are dispersed. For example, BP, HSBC and USB are all the same. The largest single shareholder holds about 1% of the equity. Its board of directors and decision-making groups are very stable, and it is hard to be affected by small changes in the shareholding. influences. "So China's acquisition of international oil company's shares and the acquisition of international energy resources are two different things."
Another British investment analyst has a slightly different view.
He agreed with the investment bank analysts mentioned above that the Chinese investment institutions’ acquisition of Total and BP stocks is a pure business investment behavior and hopes to obtain a return on investment in the future, at least for the time being. However, Total and BP's public announcement is different from what many people do.
He stated that Total and BP’s public announcement of the increase in holdings of Chinese institutions was not a welcome signal but a message similar to “We already know what you are doing”. Once the information is announced, further acquisitions are made. There will be serious obstacles to rising stock prices. There are reports that BP's announcement of information is related to visits to China by Chancellor of the British Ministry of Finance. It is Britain's welcome to Chinese funds. In response, the investment analyst does not agree: “People want us to buy their financial institutions and invest more money in their financial systems. It is definitely not that we want to buy their important companies.”
He explained that in the future, Chinese institutions will encounter more challenges in acquiring large international companies, especially oil-related companies, whether they are strategic or investment-based acquisitions.
Mutual Funds: The Ties of Total and BP
From the public equity information, our reporter inquires the list of the largest investment institution shareholders and mutual fund shareholders of the parent companies of Total, BP and BP's largest investment institution shareholders.
As can be seen from the attached table, State Street Corp is the parent company of State Street Global Advisors (US), BP's largest institutional investment shareholder. The company’s largest investment institutional shareholders and mutual fund shareholders appear in large numbers on BP’s and Total’s shareholder list. in.
The blue part of the schedule is based on the findings of this reporter. Investors of state-owned and mutual fund shareholders of State Street Corp appear on the shareholders' lists of Total and BP. Some names are different, but it is not difficult to find The possibility of the same institution is very great. It can be concluded that although the two oil companies seemingly have extremely dispersed equities, there may be a “common actor” with extremely close interests.
Among them, State Street Corp’s largest institutional investment shareholders are also the largest institutional investment shareholders of Total. Ten of the largest mutual fund shareholders are also Total’s largest mutual fund shareholders. For BP, The aforementioned two types of coincident shareholders are all six.
Not long ago, Total Chief Executive Christophe de Margerie confirmed that a Chinese-funded public fund had acquired about 1.3% of Total shares, but declined to disclose the name of the fund. The outside world was rumored to be CIC, but the spokesman of the China Investment Corporation, Bai Xiaoqing, stated that the Chinese-funded institutions that acquired Total’s equity did not belong to CIC.
Regarding whether China’s foreign exchange investment institutions can obtain more energy resources because of this or subsequent acquisitions, the opinions of the two professionals interviewed by this reporter’s reporter are exactly the same. In the words of the aforementioned investment bank analysts: Do not even think about it. (Forget about it)!

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